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Home News

What To Expect From The Future Of Commercial Real Estate

Aayat AlibyAayat Ali
February 8, 2021
in News
Reading Time: 2 mins read
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The commercial real estate industry has experienced unprecedented transformation over the past year.

According to a McKinsey report, post-pandemic recovery will mean more than just bouncing back economically, but it will also accelerate the changes we see in terms of social justice, health and wellness, work arrangements and more.

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While some hoped that 2021 would be a huge improvement compared to 2020, distressed sales within the hotel and retail industry in particular will continue to increase throughout the end of the year.

Additionally, working from home will continue to play a role in the future of workplace operations despite workers experiencing increased feelings of isolation and fatigue.

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In fact, according to CoStar Group, corporate tenants put up 42 million square feet of space on the market in the second and third quarters of 2020.

Large cities are also expected to see a decline in population as people struggle to keep up with the high-cost of living. Instead, people are flocking to secondary cities like Austin, Nashville and Salt Lake City for a more balanced lifestyle. 

This trend is also leading to a growth in the suburbs, particularly in the Sunbelt markets. Surprisingly so, millennials are leading this exodus, starting families and finding solace in the safety and space of suburbs.

Sustainability has also become a central role in how companies operate. While green recovery has taken big steps over the last few years, this will only accelerate in 2021.

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Aayat Ali

Aayat Ali

Aayat is an editor for the Daily Digest based in Lexington, Kentucky. She has worked with local coworking spaces since August of 2017 and enjoys taking her firsthand knowledge to write about the fascinating, constantly evolving world of flexible workspaces.

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